Ch 14 Social Responsibility

The risk online shoppers take when their web profile negatively impacts their credit is known as:

Weblining.

The law requiring that toys and infant products be tested before sale is called the:

Consumer Product Safety Improvement Act.

A global organization headquartered in London that represents over 200 consumer groups in more than 100 nations is called:

Consumers International.

This U.S. agency enforces the laws prohibiting deceptive advertising:

Federal Trade Commission.

The act that requires lenders to inform borrowers of the annual rate of interest to be charged, plus related fees and services charges is called:

The Truth in Lending Act.

Consumers have become more dependent on businesses for product quality because:

The complexity of products makes choices complicated for consumers.

A prime social responsibility of business is to safeguard consumers:

While continuing to supply them with goods and services they want.

Rules in the United States that prohibit competitors from secretly dividing up the market amongst themselves are called:

Antitrust laws.

The major federal consumer protection agencies are authorized by law to:

Both of these answers are correct: Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers; and substitute government-mandated standards for decision making by private buyers and sellers.

The EU's 2018 General Data Protection Regulation applies to:

Companies anywhere who provide services to European customers.

Businesses can take a number of measures to respond voluntarily to consumer demands. Which of the following is an example of such a measure?

Customer call centers.

Groups that collect and combine data from various sources into individual profiles that are sold to retailers and advertisers are called:

Data aggregators.

Warning consumers about the possible side effects of pharmaceutical drugs is an example of consumer protection against:

Hazardous products.

The "right to be heard" promises that consumers' interests will:

Receive full and sympathetic consideration.

The main responsibility of the National Highway Traffic Safety Administration is to:

Set motor vehicle safety standards.

Consumer groups have generally opposed the idea of product liability reform using which argument?

Strict liability should be retained.

Under what legal doctrine does a firm bear legal responsibility for injuries caused by something it made or sold, whether or not it was negligent or breached a warranty?

Strict liability.

In some cases, businesses have banded together to agree on how they will treat their customers. This is called:

Voluntary industry codes of conduct.

When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is an example of:

Industry self-regulation.

Which of these is not a current consumer law that protects individual privacy?

Internet "do not track" rules.

Which of these statements is true regarding the Class Action Fairness Act of 2005?

Both of these answers are correct: Lawyers were restricted from shopping for friendly venues to try interstate cases; and excessive attorney compensation was limited.

Which part of the Department of Justice protects the public from being charged excess fees based on one's race?

Civil Rights Division.

Consumers owe more money on their home loans (mortgages) than on any other kind of household debt. After mortgages, what makes up the largest portion of household debt?

Student loans.

Many companies have argued that the evolution of strict liability has:

Unfairly burdened them with excess costs.

One alternative to product liability lawsuits is called:

Alternative dispute resolution.